For a perfectly competitive firm, when MC is less than MR
A) the producer has an incentive to expand output.
B) the producer has an incentive to decrease output.
C) the producer has no incentive to change production.
D) economic profits must be positive.
A
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A countervailing duty is a tariff that is levied to counteract
A) the dumping of goods in the domestic market by foreign firms. B) a sudden surge of imports which hurt a domestic industry. C) subsidies given to foreign firms by their own governments. D) the tariff on domestic goods that are enacted by foreign governments. E) low prices for imported goods that are made in countries with low wages.
The combination of barriers to entry that create monopolies and the product differentiation that characterizes monopolistic competition provide the setting for the creation of an oligopoly
a. True b. False Indicate whether the statement is true or false